Oaktree Says Higher Quality Junk Bonds Primed for Bargain Hunting
- BB rated bonds look attractive, head of performing credit says
- Sees higher default risk in private credit and leveraged loans
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The head of performing credit for one of the world’s largest distressed debt firms, Oaktree Capital Management, says there are pockets of opportunity in junk bonds for investors willing to look past more volatility and wider credit spreads in 2023.
“There are some bargains to be had,” Armen Panossian, who is also the chief executive of Oaktree Specialty Lending Corp., said in an interview with Bloomberg TV. “The percentage of BB rated high-yield bonds is the highest it has been in 10 years with 60% of the market being lightly levered and offering attractive return with dollar prices on those instruments in the seventies and eighties.”